The chickpea market has fallen heavily over the past week, we have seen a significant drop in prices over the past week, Narrabri was bid $800/mt and the downs at $840/mt. The Chana futures in India has fallen by about 15% on the back of the governments implementation of a 35% margin call on all futures contracts. This has resulted in speculators and holders of physical product selling futures so they do not have to pay the government the margin call. Overnight the Chana futures steadied to be up about 0.2% for the December contract. This is the first day is has finished higher in the past week and a half, so this is good news moving forward.
Chicago Board of Trade wheat futures remain under US$5/bushel for the December contract, and with our crop production getting more certain week by week prices seem to have plateaued for the time being. Growers expecting high protein wheat should seriously consider looking at other options than putting grain into the system or storing on farm to market later, there is a significant premium for APH1 & 2 delivered packer – yes this may not be the best option for harvest delivery, as the packers have a history of having a very slow turnaround, but if growers can manage their stacks and trucks effectively it will be a good option to snag a few extra dollars.
The arc for F1 barley and SFW1 wheat going to the downs or northern NSW for new crop is shaping up to be much smaller than what we have seen throughout the year.. January contracts are paying a $10-15/mt carry so growers who are able to store their feed grains on farm will be at an advantage to those who can’t. Faba beans have struggled to find a home, with bids of $330/mt delivered most packers – still traditionally good numbers but significantly lower than 6 weeks ago, where bids were well above $400/mt delivered packers.